–Pvt Wages +$22.8B; Savings Rate 4.0%; In PCE, Real Durables +1.1%
By Joseph Plocek
WASHINGTON (MNI) – The May personal income report was
run-of-the-mill, showing forward momentum at a modest pace.
May personal income printed +0.4%, Personal Consumption
Expenditures +0.2%, and Core PCE prices +0.2% for +1.3% over-the-year,
only a little worse than expected.
Private wages were up $22.8 billion after a $28.5 billion gain in
April. Services wage growth slowed.
Proprietors’ income, rents, receipts on assets, and transfers all
gained, adding to income. Income from interest receipts was lower,
while stock dividends gained.
Real PCE printed +0.3%. In Q2 real PCE stands on average about 2.3%
SAAR above Q1, suggesting GDP is growing. Real PCE grew +3.0% in Q1, so
the data suggest a steady to slightly slower pace, depending on
assumptions for June.
Real durables spending jumped 1.1% after declining 0.5% in April,
nondurables printed -0.2%, and services rebounded +0.3%.
Savings was at its highest level since September 2009, at
more than $454 billion. This put the savings rate at 4.0% after 3.8%
in April.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,MFU$$$,MGU$$$,MAUDR$]
